DARLA MOORE
SPEECH TO THE
SC COMMISSION FOR MINORITY AFFAIRS
“RACE, POVERTY, AND A STATE OF MIND:
SAVING THE NEXT GENERATION”
June 11, 2007
Jim (Reynolds), thank you for such a kind introduction. You know, Jim Reynolds is a role model. He is an individual who truly cares about this state, especially those who are disadvantaged. Jim is a shining example of the type of individual we need from the private sector to make our public/private partnerships work. He understands the importance of quality research, he is dogged in his efforts to make sure everyone is represented at the table, and he makes sure that the product of his efforts doesn’t wind up as just a report on a shelf. His work with the development and implementation of the Education and Economic Development Act demonstrates what commitment and effort from the private sector can help achieve. We need more Jim Reynolds in South Carolina.
I also want to take a moment to mention another participant today. A person who represents the type of commitment and effort that gives me hope that we can solve some of the incredibly difficult problems that were discussed today. Janie Davis serves both on the Education Task Force of the Council on Competitiveness and the Agricultural Advisory Board to the Palmetto Institute. Janie always has a smile, always a kind word, but is absolutely uncompromising in her efforts to help the disadvantaged communities improve their economic wellbeing. To me, she represents the public sector in a much more productive manner than some of the so-called leaders who talk a great game but who come up short on delivery. Janie, thank you for all of your efforts.
I have been asked to speak briefly on the issue of competitiveness and what it means to compete both in theory and practice. But, before I do, I must express some concerns that have been troubling me for over a year. I am a strong advocate of these types of summits which supply plenty of timely, relevant data to foster targeted discussion on specific problems needing immediate attention. In fact, the issues raised today go to the very heart of whether this state can be competitive or not. As you know, I am a true believer in the need for economic power. I have said it many times and I will say it again – it is not political power – it is economic power. I know that meaningful participation comes through economic power for one reason – if it was not true, I would not be standing here today. It is that simple. Economic power will give you political power and a permanent seat at the table. It will give you the opportunities to break down the barriers of racism and poverty. And, if we cannot address the fundamental causes of economic disparity, then every other issue will not matter.
In a report entitled “The State of the South 2004” published by MDC, a North Carolina research foundation, the basic theme was “Fifty years after Brown v. Board of Education, race still matters but poverty, regardless of race, matters more.” So, I applaud the Commission for Minority Affairs for sponsoring this forum with the goal of finding solutions to the economic challenges facing the African American community. My praise, however, comes with more than a little bit of concern. Over a year ago, I stood in Orangeburg applauding Claflin, the South Carolina Legislative Black Caucus, and the State Conference of the NAACP for sponsoring a statewide economic summit calling attention to some, if not all, of the same problems you have discussed today. And that summit, in the same manner as this summit today, provided a mountain of data clearly defining the economic and educational disparities facing the African American community. After I spoke to the assembly at that event, my conversations with individual participants left me truly excited about what would follow. I was enthused and convinced that this event would lead to meaningful efforts to find real, long-term solutions – that it could be the catalyst in building a meaningful coalition between the business community and the African American community. I felt that such collaboration could give us the tools to develop a substantive plan – not a white imposed plan – for African Americans nor a buy-in for a unilateral African American plan. But, it could be a plan that would compel both the business community and the African American community to find competitive advantages for our businesses and, at the same time, build stronger economic foundations for our communities. As Dr. Martin Luther King, Jr. once said, “We cannot walk alone.” But, for there to be a successful collaborative effort, we must have leadership – strong, committed, working leadership, and therein lies my concern.
At the end of my remarks in Claflin, I requested, as a framework for future collaboration, that the groups involved in organizing the summit establish a leadership council. I wanted this Council to work with the Palmetto Institute, the Council on Competitiveness, and possibly other business groups in developing and implementing strategies to provide opportunities for economic empowerment. Unfortunately, the leadership council was not created and everyone continues to seek solutions within their own organizations. It worries me, though. I am concerned we will never get the traction we need at the state level to address, in a meaningful way, the critical issues that must be solved for us to move forward. While I see many pockets of progress, the statewide metrics do not lie. The disparities are real and they absolutely threaten our goal of being competitive in a global economy. Now more than ever is the time for leadership. Make sure you understand, the competition from emerging countries for our businesses – for our jobs – and for our wealth is colorblind. It does not care. It will do whatever it takes to succeed. That is why I truly hope the efforts of Janie and the Commission are successful and that is why I hope we will develop the collaborative leadership necessary to implement the changes that will make all South Carolinians competitive.
Now, before I wear out my welcome, let’s talk about what it means and what it takes to be competitive. Many voices, both in the public and private sectors, now speak in terms of the need for South Carolina to be competitive. If nothing else, the Palmetto Institute and the Council on Competitiveness, now known as “New Carolina,” have helped to focus the conversation about the economic wellbeing of South Carolina as “competitiveness in the global economy.” The key is a clear understanding of the fundamental elements of being competitive. We must put aside the notion of competitiveness as an academic theory and rather adopt it as the overarching goal of our individual and collective efforts to improve South Carolina’s economy.
The elements I speak of are straightforward. We must have committed leadership guiding the participants in our economy and informed by a clear, achievable, consensus strategy. We must know and understand our competition and the challenges we face in meeting it. We must provide our workforce with superior training, education and skills, particularly in the disciplines that drive today’s commerce. We must practice and incent innovation in every field and we must employ a strategy that combines all of these to add value to our processes and end products.
The best example I can give you is the boom in China. This is a country where everyone, from the political leaders to the management of the companies, and even down to the individual workers have a coherent strategy and singular goal to build the economic might of China. Current observers report about the unwavering commitment of China to educate its citizens, particularly in engineering and the sciences. They will tell you of countless stretches of road going for a hundred miles and all you will see are new manufacturing plants and housing for workers. And, they will tell you of the number of companies all over the landscape with American names. That is our competition and here is the bottom-line – they can produce products, particularly basic products, at much lower cost than we can. Furthermore, once we produce a new product, they can quickly copy the product and produce it with equal quality at less cost. We have had capitalism all to ourselves for 250 years. China is building its capacity with a vengeance and may well replicate what we have done in a scant 25 years. The Cold War is dead but global competition is as fierce as a military campaign.
As I said a moment ago, understanding our competition is part of the equation. However, we must also understand the challenges we face in meeting it.
New technology has made the world so much smaller. Because of the microprocessor and the volume of work that ends up in digital form, the tethers of physical location have been permanently cut. There is no limit to the processes and services that can exchange in commerce via the internet. Requirements involving engineering, x-rays, diagnostic services, architectural drawings, and a whole list of other work-related activities transmit instantly across the globe. What this means is employers right here in South Carolina have access to a worldwide workforce of people.
The jobs available require more education and training. Companies today must find innovative ways to add value to their products and services. If a Chinese company can make a shirt cheaper, then the South Carolina company must find a way to produce the same shirt with fabrics that protect or medicate us. If Brazil can make ethanol cheaper than we can, we must develop feed stocks that yield more energy and can be grown efficiently and more cheaply on a shorter cycle. This list goes on and on from high technology to basic jobs. This requires a nimble, better trained, more skilled workforce. More important, it requires a commitment from our state to raise the bar for both educational opportunities and workforce training. The challenge is quite simple. If we cannot be competitive in the global economy – if we cannot find a way to provide a better educated workforce, then the rest of the issues really will not matter. We simply will not have an economy strong enough to provide the opportunities for a better quality of life.
But, here is the good news – we can compete – we can be productive – we can create wealth and improve the quality of life for our citizens. The global economy not only creates competition but it creates extraordinary opportunities. In our work at the Institute, we see new opportunities in agribusiness, energy, and tourism that are right here in South Carolina. In fact, we are strategically located with our natural resources and demographics to take advantage of the economic opportunities presented by the global economy. It is truly a crossroads for us.
As always, though, the question is “Do we have the will?” Can we put aside the parochial issues – the turf battles – the fights over who gets credit? Can we overcome the racism – the lack of attention to our disadvantaged communities? Are we willing to build stronger coalitions? Are we willing to trust our fellowman regardless of the color of his or her skin? It truly is in our hands. The competition has staked out their position. The ball is in our court. I commit to you that the Palmetto Institute is in the fight for the long run.
Again, I applaud your efforts today. I look forward to our mutual efforts helping to make South Carolina more competitive.